IRS sent out 12 million refunds, averaging over $1,200 each, following corrections to 2020 taxes
(WJW) – The Internal Revenue Service says it has refunded nearly 12 million taxpayers after making corrections to their 2020 tax returns.
According to the IRS, the corrections were needed as a result of the American Rescue Plan Act. When President Joe Biden signed the bill into law in March 2021, it excluded “up to $10,200 in unemployment compensation from taxable income calculations.”
But, the change came after some taxpayers had already filed their taxes, causing them to overpay on unemployment compensation in 2020.
This impacted single taxpayers and married couples with modified adjusted gross income below $150,000 in 2020.
The IRS says it fixed about 14 million returns, resulting in refunds totaling $14.8 billion and averaging about $1,232 each. Affected taxpayers either received a refund or had the funds applied to taxes due or other debts.
Those impacted should have received a letter about the corrections. The IRS stresses keeping the letter for tax records.
Eligible taxpayers who didn’t get a correction from the IRS might have to file an amended 2020 tax return to claim the refund.
If you believe you qualify for a refund, you can visit the IRS website for more details.
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